Cord Cutters Are Millennials...And Everyone Else

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It’s no coincidence that all in the same month, Netflix announces earnings surpassing expectations (remember when pundits were predicting their imminent demise?) and Comcast announces plans to launch a competing streaming service. It’s clear the streaming space -- Netflix, Hulu, etc. -- is gaining momentum and becoming a viable alternative to traditional cable services such as Comcast and Time Warner Cable. Customers ditching cable for streaming, a group known as “cord cutters,” benefit from lower pricing, no commercials, and the opportunity/curse to binge-watch their favorite TV shows and mov…

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Uber vs Lyft: Finding the Most Valuable Rider

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The ridesharing industry is a constant competitive battle between the two behemoths - Uber and Lyft. Each company is coming up with new tactics to win customers - hot partnerships, fares competitive with public transport, puppy delivery - the list goes on. At TXN, we have the unique opportunity to analyze the spend of both loyal patrons and customers who use both services, a group we’ve dubbed “the value riders.” We took a look at our ridesharing panelist data to determine the size of the value rider opportunity, and it turns out that they’re not only plentiful, they are also the power spende…

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Starbucks and Lyft: A Match Made in Heaven

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Yesterday, Lyft and Starbucks announced a partnership in which Lyft drivers and customers will earn Starbucks rewards towards drink and food purchases. Starbucks CEO Howard Schultz on why they chose Lyft over Uber: "We’ve spent a lot of time with (Lyft) over the last few months and have been so deeply impressed with their business model, their values and approach of building a business the right way.”[1] Since, at face value, the goal for both Starbucks and Lyft is to encourage customers to use their services over competitors, we decided to look at our data to estimate the business impac…

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The Whole Foods Strategy: The More Educated The Better

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While most grocery chains optimize store locations based on population density, mean household income (HHI), price per square foot, etc., Whole Foods prioritizes education over many of the standard criteria; it’s even in the top 3 store location criteria on their website.) This makes sense, right? If I’m a “smart” shopper, I might place more emphasis on quality of goods and be prepared to spend more money for quality. But let’s also be honest; if I’m a poor college student or living on an academic’s salary, I also need to make budget-conscious decisions which might mean shopping at the mainstr…

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Are Millennials Really Abandoning Fast Food?

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With the population of millennials officially surpassing baby boomers as the largest generation in the US (according to the most recent US census), seemingly every business is rethinking the way it attracts and interacts with this younger generation. The fast food industry in particular is having a whopper of a time (pun intended) changing the way it does business. According to data compiled by the RBC and NPD group via Forbes[1], millennials have cut back on annual restaurant visits by over 21% in the past 7 years. They also note that traditional fast food companies, such as McDonald’s and Bu…

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